The risk-reward potential looks better in large-caps at this stage
Financial Express Delhi|January 06, 2025
In a significant part of the large-cap sector, the valuations have become reasonable and growth could surprise on the upside in FY26.
Rahul Singh, chief investment officer, Equities, Tata Mutual Fund

Rahul Singh, chief investment officer, Equities, Tata Mutual Fund, in an interview to Saikat Neogi underlines that the expectations on mid- and small-caps in terms of earnings growth are on the higher side and could see disappointment if there are execution challenges or persistent macro slowdown.

What kind of asset allocation strategy should a retail investor look at in the new year? Asset allocation can be 40% in balanced/hybrid/multi asset funds, another 30-40% in core diversified categories like large-caps coupled or large and mid-caps and remaining in small cap/sectoral funds (banking/healthcare). However, it also depends on the investor's risk appetite and goals to be achieved.

This story is from the January 06, 2025 edition of Financial Express Delhi.

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This story is from the January 06, 2025 edition of Financial Express Delhi.

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